A theocracy is a form of government in which one or more deities are recognized as supreme ruling authorities, giving divine guidance to human intermediaries. In a theocracy, the states political leadership is drawn from the clergy of a particular religious group, who act in the name of God. The main characteristic of a theocracy is that the state understands itself as being ultimately governed by God, and as such, the entire political system is designed to reflect the supremacy of God, and divine teaching or revelation, over other sources of political wisdom and knowledge. In many theocracies, government leaders are members of the clergy, and the state’s legal system is based on religious law. Religious rules in a theocracy are often interpreted in a way that conflicts with contemporary concepts of human rights.

Examples of theocracies include Saudi Arabia, Iran, and the Vatican. Having a state religion is not sufficient enough to mean that a state is a theocracy in the narrow sense of the term. Many countries have a state religion without the government directly deriving its powers from a divine authority or a religious authority which is directly exercising governmental powers.